The appreciating rupiah helped companies as it lowered the price of imported materials, he added. Bank Indonesia has said it will allow the currency to appreciate up to the end of this year in an effort to reduce the imported inflation.

Finance and retail companies were among the biggest winners in the first three months of 2011. Noodle maker Indofood recorded a 17.8 percent increase in net profit to Rp 433.5 billion ($50.7 million) in the first quarter, it announced on Thursday. Instant noodles and dairy products dominated its sales, contributing 88 percent of its Rp 4.7 trillion total sales revenue.

Gudang Garam, one of Indonesia’s leading cigarette makers, saw net profit rise 18 percent to Rp 1.11 billion in the first quarter.

Ibrahim, an analyst at Harvest International Futures, said Indonesians’ confidence in their purchasing power stayed firm in the first quarter. He pointed to strong demand for consumer goods even as inflation was high in the first three months.

“Demand was strong. The price increases might have even played a role in the companies’ higher earnings,” he said.

Indonesian retailer Mitra Adi Perkasa recorded Rp 44 billion in net profit, 45 percent higher than the first quarter last year. Corporate secretary Fetty Kwartati said the increase was the result of targeting the country’s growing middle class.

The banking sector also saw a similar profit growth story. Bank Negara Indonesia saw its net profit climb 20 percent to Rp 1.2 trillion in the first quarter, and Bank Raykat Indonesia — the nation’s second-largest bank — had a 52 percent increase in profits to Rp 3.26 trillion. Bank Permata enjoyed a 20 percent increase from the previous year to Rp 321 billion, while Bank Central Asia saw a slim 4.4 percent increase in its net profits to Rp 2 trillion.

Ibrahim said the banking sector’s earnings also received a lift from Indonesia’s standing as a country that relies heavily on exports of commodities and other raw materials.

“Companies in commodities and plantation industries are having no problems paying their debts,” he said.

He also tried to play down fears that Indonesian stocks are overvalued, telling investors not to worry about the possibility of economic bubbles forming.

“The capital markets are backed up with strong fundamentals, so the market and the economy are balanced,” he said.

President Joko Widodo (Jokowi) has stated that according to US News and World Report survey results, Indonesia was in the second place among the world`s two most attractive countries for investment destination.

President Joko Widodo expressed congratulations to mothers and women on the occasion of the International Women`s Day in front of the recipients of Smart Indonesia Card, Hope Family Program, and Social Rice (Rastra) assistance.

Presidential Chief of Staff Moeldoko received the visit of the American ambassador to Indonesia, Joseph R Donovan Jr, at his office in Jakarta on Monday, to discuss a number of bilateral cooperation, including joint military training.

The Kazakh government is interested to learn the Indonesian National Counterterrorism Agency (BNPT)′s soft approaches to deal with terrorism, BNPT Chief Commissioner General Police Suhardi Alius said in a press statement released on Sunday.